Dan Ariely on our fraud provoking culture and discounting disclosure
Over the past several decades, companies have shifted their focus from prioritizing long-term growth to maximizing "shareholder value." This approach, not surprisingly, has led to increased attention on short-term goals which have not only hurt employees and taxpayers, but are often at odds with a company's long-term objectives. We talk to behavioral economist Dan Ariely about the psychology behind increasing shareholder value and how this might be an additional motivation for Wall Street fraud. We also ask him whether disclosure is an effective way to deal with conflicts of interest and whether punishment really prevents crime.